Answer the following statement(s) true (T) or false (F)

1. To make the most accurate predictions about a stock's future price, one must look at both the past pattern of prices and the current price of the stock.
2. In an efficient market, the current price reflects all available information.
3. The past performance of a stock is the best guide to future performance.
4. A speculative bubble is characterized by systematic undervaluing of stocks.
5. Efficient financial markets are called so because they produce an amount of financial products that maximizes total surplus in the financial industry.

1. False
2. True
3. False
4. False
5. False

Economics

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In the two-period model with asymmetric information, the presence of bad borrowers who always default

A) makes good borrowers better off. B) matters only for the loan interest rate faced by bad borrowers. C) affects the equilibrium profits of banks. D) affects good borrowers adversely.

Economics

Briefly review the history of antitrust legislation in the United States

Economics